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In Cairo, the diplomatic effort continues in the search for a solution to block future arms smuggling from Egyptian controlled Sinai into Gaza. This is a crucial Israeli goal required to prevent the Gaza Strip again becoming a ticking time bomb regardless of the UN resolution calling for an immediate and durable ceasefire. Meanwhile, Israeli is keeping moderate military pressure on Hamas as the terrorists continue to lob rockets at an estimated one-million Israeli civilians in southern Israel. At this juncture the Israeli approach appears to be a blending of military and diplomatic steps to resolve the crisis. If it does not succeed within the coming days all options maybe open.

The U.S failure to veto a UN Security Council resolution calling for an immediate ceasefire leading to a full IDF withdrawal from Gaza has sent shock waves through Israel. The Israeli leadership must now decide whether to comply with the resolution, defy it by launching an escalation against Hamas or to try and buy time for a plan to block future arms smuggling from Egypt into Gaza.

Rockets are being launched at Israeli civilians not only from the Gaza Strip but also from Lebanon. However, Israeli officials view the new Lebanese rocketing as a Palestinian attempt to draw Israel into war with Lebanon. IsraCast quotes one Israel source as saying "we have no intension of retaliating or being drawn into a second front, but let's hope Lebanon does not let it become a habit". Meanwhile, Israel has agreed to more three-hour ceasefires to allow Palestinians in Gaza to stock up on food supplies via Israel, while the Israeli leadership considers whether to expand the military operation in light of the continuous Hamas rocketing or to go for a ceasefire.

The tragic killing of Palestinian children among the people including a Hamas rocket team has aroused shock and anger. However, it is now apparent that the school building was being used as a launch pad for rocketing Israel, a tactic repeatedly used by Hamas. IsraCast presents an official IDF statement on the incident as well as comments by Dr. Dore Gold, a former Israeli ambassador to the UN, and Brig. Gen. (res.) Yossi Kupperwaser, a senior IDF intelligence officer.

Israeli leaders have rejected a proposal by the French President Nicolas Sarkozy and his European colleagues, calling for an immediate ceasefire between Israel and Hamas. From President Shimon Peres on down, the Israeli officials made clear that not only must there be a stop to the eight years of Hamas rocketing, but a mechanism would also have to be in place to prevent any recurrence in the future. Meanwhile, inside the Gaza Strip, four IDF soldiers have been killed by 'friendly fire' in the campaign to root out the terrorists who have taken cover behind the civilian population.

Iran has been 'calling the shots' for Hamas in the current war with Israel - that's the assessment of Menashe Amir, a leading Israeli expert on Iranian affairs. Iran, which supports Hamas and the Islamic Jihad in Gaza with hundreds of millions of dollars, as well as with military aid including instructors, apparently gave the order to Hamas leader Haled Mashal in Damascus who related to the Gaza Strip. In Amir's view, there is no doubt that Iran is manipulating Hamas, as it does Hezbollah in Lebanon, not only against Israel but as part of its ongoing confrontation with Sunni Arab state in the Middle East. Egypt, Saudi-Arabia, Jordan and other Arab countries are furious over Iran's interference, something which most European countries fail to understand. In this wide-ranging interview with IsraCast, Menashe Amir analyzes various aspects of the current hostilities between Israel and Hamas.

Eight days after the IDF launched major air strikes, Hamas continued its relentless rocketing of Israeli towns and villages from Gaza. Prime Minister Ehud Olmert and Defense Minister Ehud Barak both declared there was no alternative but to send in IDF troops and tanks to silence the shelling of Israeli civilians once and for all. Moshe Arens, a former Israeli Defense Minister and Foreign Minister and a Likud party member, assessed the evolving situation for IsraCast concluding this is a campaign that Israel can and must win.

What is the state of affairs, one week after Israel launched its aerial counter strike to suppress the Hamas rocketing of Israeli villages and towns over the border? Hamas is continuing its rocketing escalation now targeting the city of Beer Sheva, some 40 KM away. Israeli aircraft have been bombing day and night scores of Hamas targets in Gaza, focusing on the rocket teams and their arsenals. Israel has also began targeting Hamas leaders including one who called for more suicide bombing attacks against Israel a day earlier. Dr. Dan Schueftan, director of director of the National Security Studies Center at the University of Haifa analyzed various aspects of the current campaign in an in-depth interview with IsraCast.

Two Palestinian youths were transferred from Gaza to Israel to receive medical treatment at Israeli hospitals. The Gazan youths were injured during IAF strikes on Hamas targets, which include weapons manufacturing and storage facilities, terror operative training camps, and other facilities that are crucial to Hamas's terrorist infrastructure in the Gaza Strip. The youths were transferred to Israel via the Erez crossing. In addition to the two youth, approximately 20 chronically ill were transferred from the Shifa Hospital in the Gaza Strip to Israeli hospitals.

The largest humanitarian aid transfer to the Gaza Strip since the beginning of Operation Cast Lead took place on Tuesday afternoon (Dec. 30). 93 trucks containing humanitarian donations such as food and medical supplies from several different countries and international organizations.

An Israeli official says Israel will now relate with same force to attacks from Gaza as it would from any other neighboring Arab state which provoked Israel. This implies that Israel will use all military force necessary to defend its civilians, without making any distinction between political and military wings and various terror groups. The IsraCast assessment is that Israel will attempt to break the Hamas motivation to rocket Israel and the terrorists' belief that violence and not negotiation will further its goals.

Appeals by Israeli leaders, from Palestinian President Mahmoud Abbas and even Egypt have apparently gone unheeded by the Hamas leadership of the Gaza Strip. The Palestinian terrorists who govern Gaza have continued to fire scores of Qassam rockets and mortars at Israeli civilians in the towns and villages just over the border. It has been a time of terrorizing the Israeli children, women, and men who live in the area, many of whom have fled their homes. Unless there is some dramatic halt to the terrorism by Hamas it will only be a matter of time and the weather, before Israel finally launches a counter-terror operation to suppress the attacks.

Hamas has announced that its 'tahadiya' truce with Israel ended officially on Friday morning, six months after it began. A short time after the deadline, Palestinian terrorists launched fresh attacks on Israeli civilians just over the border. Israel and the Palestinians have entered a new juncture with both sides having to decide what happens now. IsraCast examines several possibilities that could lead either to an extended lull or a dangerous escalation.

The selection of a new Likud Knesset list has aroused speculation in Israel about its impact on the upcoming February 10th election. IsraCast assesses the current situation quoting Netanyahu sources who believe that security will drive this election campaign.

The Israeli election primaries moved into high gear amid escalating settler violence in Hebron and Palestinian rocketing from Gaza. This sudden shift, above and beyond its security implications, may provide Labor party leader Ehud Barak with a 'make or break' opportunity in his role as defense minister. IsraCast assesses the evolving situation against the backdrop of Hebron and Gaza - further reports will also analyze the Likud and Kadima strategies for the February 10th election.

When should Israel attack Iran's nuclear weapons facilities? IsraCast reports that Barak indicated where he stood when he briefed the Knesset Foreign Affairs & Defense Committee in Jerusalem. On the burning issue of the shattered cease-fire with Hamas in Gaza, Barak stated that Israel would be ready to resume the truce, if possible.

At the UN, Israel's President Shimon told the King of Saudi Arabia Abdullah Al Aziz that Israel accepted his initiative for peace and security between the Arab world and Israel. Peres agreed with the Saudi leader that " there is no military solution to the Arab - Israeli conflict ". However, Palestinians in the Hamas controlled Gaza Strip apparently they have their own solution - they escalated their rocketing of Israel, injuring some civilians and terrifying thousands more in the western Negev area.

During the American presidential campaign, Israeli political figures were careful not to make any comment that might be seen as favoring either Barack Obama or John McCain. But now, Israeli officials are again voicing their positions on Middle East issues. This trend will likely continue as Israel's own election campaign gets under way.

This weekend, the U.S presidential election campaign draws to a close while Israel's gets on their way. In both campaigns, Israel's future will be intertwined in more ways than one. IsraCast looks at the American ballot on November 4th and Israel's poll is now set for February 10th.

In what might be one of his last briefings to the Knesset Foreign Affairs and Defense committee - outgoing Prime Minister Ehud Olmert summed-up Israel's strategic situation. His briefing came against the background of his Kadima party's leadership primaries on September 17th, to select a new party leader. IsraCast reports that at the closed door briefing, a senior IDF intelligence officer warned that if all goes well for Iran, it could acquire nuclear weapons by early 2010.